Question 1

What is California Water Service's WACC?

Accepted Answer

California Water Service (CWT) has a Weighted Average Cost of Capital (WACC) of 5.37%. This is calculated using a Cost of Equity of 5.80% (via CAPM with a beta of 0.37) and a pre-tax Cost of Debt of 5.50%, with an equity weight of 70.86% in the capital structure.

Question 2

Is California Water Service's WACC high or low?

Accepted Answer

California Water Service's WACC of 5.37% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is California Water Service's WACC calculated?

Accepted Answer

California Water Service's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 5.80% is derived from the CAPM model using a beta of 0.37. The pre-tax Cost of Debt (Rd) is 5.50%. The capital structure is 70.86% equity and 29.14% debt.

California Water Service (CWT) — WACC 分析

WACC 构成

解读

California Water Service（CWT）WACC：5.37%

WACC计算器

California Water Service（CWT） WACC 解读

CWT 公司分析

CWT DCF 估值

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